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Bill > A3442


NJ A3442

NJ A3442
Establishes annual cost of living adjustment based on Consumer Price Index for certain children, youth, and family services organizations.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill stipulates that on or after the effective date of the bill, the terms of a contract entered into between the Department of Children and Families (DCF) and a children, youth, and family organization include an annual increase in the cost of living adjustment received by the organization. The cost of living adjustment would be based on the Consumer Price Index for the previous 12-month period beginning October 1 and ending September 30, as published by the United States Department of Labor, and DCF would be required to announce the rate of the increase on October 1 of each year. As used in the bill, a "children, youth, and family organization" means an organization that provides programs and services to children, youth, and families through contracts entered into with DCF including, but not limited to, programs partially or fully funded by the State Medicaid program established pursuant to P.L.1968, c.413 (C.30:4D-1 et seq.). DCF contracts with children, youth, and family organizations to provide child protective and treatment services through a competitive bidding process whereby a fixed rate is established for the provision of services. The fixed rate includes all the costs associated with the delivery of services including, but not limited to, salary, wages, and compensation for the staff of the organizations who provide the direct services to children, youth, and families. Such staff members continually face increases in their living expenses, but the rates provided to children, youth, and family organizations contracted with DCF are not adjusted for cost of living increases. One-time cost of living adjustments provided to the organizations by the Legislature do not keep pace with rising costs and inflation. This bill would establish a statutory mechanism for providing annual cost of living adjustments to children, youth, and family organizations contracted with DCF to ensure that the provision of essential services are fully funded and sustainable, and the staff providing such services are appropriately compensated.

AI Summary

This bill mandates that contracts between the Department of Children and Families (DCF) and organizations providing services to children, youth, and families will now include an annual cost of living adjustment (COLA) to ensure these essential services remain fully funded and sustainable. A "children, youth, and family organization" is defined as any entity that contracts with the DCF to offer programs and services to these populations, including those supported by the State Medicaid program. This COLA will be calculated based on the Consumer Price Index (CPI), a measure of inflation published by the U.S. Department of Labor, reflecting the change in prices over the 12 months from October 1 to September 30. The DCF will be required to announce the specific COLA rate each year on October 1. This change addresses the current situation where fixed contract rates do not account for rising expenses faced by the staff of these organizations, despite their critical work, and aims to provide a consistent mechanism for compensation adjustments that keeps pace with inflation, unlike previous one-time legislative adjustments.

Committee Categories

Education

Sponsors (6)

Last Action

Introduced, Referred to Assembly Children, Families and Food Security Committee (on 01/13/2026)

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